What happened
Shares of Amplitude (AMPL 2.37%) were falling today after the digital-optimization software company edged out estimates in its fourth-quarter earnings report but missed the mark with its guidance. As of 3:15 p.m. ET, the software stock was down 11.7% on the news.
NASDAQ: AMPL
Key Data Points
So what
Amplitude, which helps companies analyze and improve their digital products, delivered solid results in the fourth quarter with revenue up 32% to $65.3 million, ahead of the consensus at $63.6 million. It grew its customer base by 25% to 1,994, adding 81 new customers in the quarter.
Customers with more than $100,000 in annual recurring revenue also increased 25% over the last year to 480. And Amplitude posted a dollar-based net retention rate of 119%, showing existing customers grew their spending by 19% over the last four quarters.
Remaining performance obligations, a proxy for the backlog, increased 46% to $248.2 million, a promising sign for future growth.
On the bottom line, the company's adjusted loss per share narrowed from $0.05 to $0.03, which compared to estimates of a loss of $0.04 per share. CEO Spenser Skates said:
We had a strong finish to the year, ending with 480 customers paying more than $100,000 in annual recurring revenue. By raising the bar for execution and investing in our product for the long term, we'll be well-positioned to drive durable growth in a category where the opportunity is just beginning to unfold.
Now what
Looking ahead, the company called for revenue of $64 million-$66 million in the first quarter, a growth rate of 22.5% at the midpoint and below the analyst consensus of $66.5 million. It also expects an adjusted per-share loss of $0.06 to $0.08, while analyst consensus calls for a loss of $0.06.
For the full year, it sees revenue of $283 million-$291 million, or 19% to 22% growth, which was below estimates at $292.9 million. Its full-year bottom-line guidance was better than expected as the company sees an adjusted loss of $0.11-$0.16, an improvement from $0.21 in 2022 and better than analyst expectations at $0.20.
Management said its guidance was conservative due to macroeconomic headwinds and expects to be free-cash-flow positive in 2023, showing its improvements on the bottom line. Given that, today's sell-off seems overdone.
